MicroStrategy executive chairman Michael Saylor recently highlighted a chart comparing 30-day historical volatility across major tech stocks and Bitcoin. As of October 2, Bitcoin volatility reached 39%, matching Nvidia. Other tech giants showed varying levels: Meta recorded 47%, Tesla 43%, while Amazon, Alphabet, Microsoft, and Apple ranged between 21% and 24%.
The company's common stock, MSTR, exhibited 94% volatility, while its preferred stock, STRC, showed 9%. The STRC asset offers a 12% annual dividend. In late June, STRC dropped to approximately $75, which is 25% below its par value of $100, due to margin calls triggered by a decline in Bitcoin prices.
To stabilize the preferred stock, MicroStrategy initiated buybacks and established a reserve of roughly $5 billion. The company is also considering a daily preferred dividend proposal for STRC holders. Meanwhile, MicroStrategy continues to accumulate Bitcoin, currently holding 847 666 BTC at an average cost of $75 437 per coin.
Critics, including Peter Schiff, suggest that the company's Bitcoin-buying capacity has shifted, as it has not sold STRC since May and now relies primarily on MSTR sales to fund acquisitions. Saylor maintains that these assets serve different purposes: Bitcoin for direct ownership, MSTR for leverage, and STRC for income.
